HUD COVID-19 Updates and FAQs

By: Akritee Aggarwal and Adam Norlander

As the coronavirus (COVID-19) pandemic continues to impact communities and cause a strain on resources, Congress and HUD have responded with legislation and guidance providing additional funding and flexibility for HUD programs. This KH Housing Alert provides a summary of such legislation and guidance to aid stakeholders in preventing, preparing for and responding to the pandemic in real time. Of course, the HUD guidance continues to evolve and further legislative relief is expected. We will seek to keep you informed of any significant legislative and regulatory developments in the future.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

As news about the coronavirus (COVID-19) develops, the health and safety of our clients and staff are our top priority. Klein Hornig is closely adhering to recommendations from the Centers for Disease Control and Prevention (CDC), as well as local, state, and federal public health authorities.

Klein Hornig remains fully operational with attorneys and staff working remotely during our regular business hours of 8:30am-5:30pm EST.

HUD Publishes Updated Administrative Guidelines for Project-Based Voucher Subsidy Layering Reviews

By: Meredith Barnett & Adam Norlander

On February 28, 2020, HUD published updated Administrative Guidelines (“New Guidelines”) governing subsidy layering reviews (“SLRs”) for Project-Based Vouchers (“PBVs”).  Effective immediately, the New Guidelines update prior SLR guidelines issued by HUD on September 26, 2014 (79 Fed. Reg. 57955) (“Prior Guidelines”), to:

1. Include new PBV Housing Assistance Payments (“HAP”) contract terms in accordance with the Housing Opportunity Through Modernization Act of 2016 (“HOTMA”);
2. Provide SLR guidelines for Mixed-Finance projects; and
3. Clarify cash flow, debt coverage ratios, net operating income, and operating expense trending requirements.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

It has been another successful and busy year at Klein Hornig. We are especially grateful to our clients, staff and all those who help us to develop and preserve affordable housing and revitalize communities with legal solutions that are smart, efficient and durable.

In 2019 we welcomed 3 new attorneys: Nury Aguasvivas, Meredith Barnett and Stephanie Johnson as well as 3 administrative staff members: Joseph Golding, John Sullivan and Karrissa Webb.

We look forward to working with you in 2020!

In September, Klein Hornig employees and their families participated in the KH Family Retreat. The Family Retreat is a KH tradition rooted in our commitment to functioning as one firm across two growing offices and as one family. Below is our group photo:

HUD Unveils RAD-for-PRAC & Updates RAD Implementation Notice

By. Chris Hornig & Jessie Cassella

Yesterday, HUD issued Notice H 2019-09, which replaces the prior HUD notice governing the Rental Assistance Demonstration (RAD) program (HUD Notice 2012-32, REV-3). This Notice will govern all pending RAD conversions under Component 1 (conversions of public housing units) and Component 2 (conversions of Mod Rehab, RAP, and Section 202 PRAC units). Except for several changes that require a 30-day comment period, the terms of this Notice are effective immediately and will govern all RAD conversions that have not yet closed. If requested by the applicant, HUD may apply provisions from prior versions of this Notice for projects that are anticipated to close soon.

Overall, the changes enacted by this Notice create new opportunities for PHA collaboration and rent bundling, provide additional guidance regarding transfers of assistance, expand resident rights, create a few additional steps in the RAD conversion process, and provide implementation guidance for RAD-for-PRAC conversions.

For a summary of key changes to RAD Component 1, please click here. For a summary of key changes to RAD Component 2, please click here.

Should you have any questions about this KH Housing Alert or require any further information, please contact Chris Hornig (chornig@kleinhornig.com) or Jessie Cassella (jcassella@kleinhornig.com).

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2019 Klein Hornig LLP, All rights reserved.

On May 15th, Klein Hornig was once again honored at the DC Access to Justice Commission event for its Platinum level support of the DC Raising the Bar Campaign.

Klein Hornig, along with forty-two other firms, contributed nearly $6 million to organizations that service low-income District residents with urgent legal issues.

For more information on the DC Raising the Bar Campaign, please visit: https://www.dcaccesstojustice.org/about-commission

HUD Issues NOFA for $50 Million under Section 202 Supportive Housing for the Elderly Program

By. Benjamin Funk

On April 4th, HUD issued a Notice of Funding Availability (the “NOFA”) making up to $50 million available for competitive award under HUD’s Section 202 Supportive Housing for the Elderly Program (the “202 Program”). Funding for capital advances under the 202 Program was last made available nearly a decade ago, in 2010. Many developers of, owners of, and investors in affordable housing for very-low income elderly households have anxiously awaited HUD’s posting of the NOFA.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Housing Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2019 Klein Hornig LLP, All rights reserved.

HUD Publishes New Proposed Section 3 Rule to Direct Employment and Other Opportunities for Low- and Very Low-Income Persons

By. Adam Norlander

On April 4, 2019, HUD published a proposed regulation to implement the policies of Section 3 of the Housing and Urban Development Act of 1968, as amended (“Section 3”). The goal behind Section 3 is to ensure that employment and other economic opportunities generated by federal financial assistance for housing and community development programs is, to the greatest extent feasible, directed toward low- and very low-income persons, particularly recipients of government assistance. HUD’s current regulations at 24 CFR Part 135 were promulgated as an “interim” rule in 1994. Since then, HUD has undertaken several efforts to reform the Section 3 interim rule, but no final regulations have been issued. Senior HUD officials, including HUD Secretary Carson, indicate that HUD’s adoption of a final Section 3 rule is one of HUD’s top priorities.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2019 Klein Hornig LLP, All rights reserved.